Hong Kong's new short position reporting rules, the Securities and Futures (Short Position Reporting) Rules, came into effect on 18 June 2012. The Securities and Futures Commission (SFC) revised its FAQ shortly prior to the first reporting date to simplify the reporting process for partnerships. The change is of particular relevance to limited partnerships.
The Rules contemplate that the partners in a partnership can authorise one of the partners or a third party to report short positions on behalf of all the partners. The original process required the relevant partner or third party to disclose the name, address and contact details of all partners in the partnership at the time it registered with the SFC for a short position reporting ID. Under the revised FAQ, the SFC has stated that it is no longer necessary to disclose the name, address and contact details of the partners, either at the time of registration or at the time of making a report. However, if the SFC asks subsequently, you must provide a full and complete list of partners.
For limited partnerships, the revised FAQ means that the general partner can report on behalf of the partnership without disclosing details of the limited partners. As a result, limited partnerships are treated in a similar manner to unit trusts, where the trustee is required to report short positions of the trust but not of individual beneficiaries under the trust.